North Arkansas Electric Cooperative (NAEC) will return $5,957,140 in capital credits to members this December, marking the 38th consecutive year the cooperative has refunded margins and bringing total returns to nearly $59 million since its founding in 1939.
CEO Mel Coleman said the refunds highlight the cooperative business model, in which members, rather than customers, benefit from the co-op’s earnings. “NAEC was founded and continues to operate to provide them reliable, affordable electricity,” he said.
Capital credits are calculated by subtracting operating expenses from revenue to determine taxable margins. The remaining balance is allocated to members based on electricity usage. Funds are retained temporarily to support operations, reducing the need to raise rates or borrow money.
This year’s refunds cover approximately 57% of 2000 margins, 78% of 2001 margins and 17% of 2022 margins. Members billed during those years will receive refunds in 2025. Those under $50 will see a credit on their December statement, while amounts $50 or higher will be mailed as checks. Nonactive members with refunds over $2 will also receive a check.
NAEC serves nearly 39,000 accounts across eight counties, with headquarters in Salem and full-service offices in Ash Flat and Mountain Home. Members with questions can call (870) 895-3221, email info@naeci.com, or visit an office.
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